Price hikes buoy paint cos’ prospects

Paint stocks are expected to do well given the increased demand from the real estate sector. Analysts say while the unorganised players too are witnessing demand, the branded majors will be able to corner higher share in revenues. Moreover, all the paint companies have raised prices in two or three tranches during the second quarter of FY22. “There has been acceptance of the price hikes in the market and materially no impact on the volumes. Though there is a slight impact on demand in September 2021, it is partially due to delayed Diwali,” said an analyst, who remains positive on Akzo Nobel, Kansai Nerolac, and Indigo Paints.